FAC Explorer

Audit 49049

FY End
2022-06-30
Total Expended
$1.24M
Findings
2
Programs
9
Organization: Saranac Community Schools (MI)
Year: 2022 Accepted: 2022-11-20
Auditor: Thompson Seiler & Kolb PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
51360 2022-001 Significant Deficiency Yes P
627802 2022-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $551,968 Yes 0
10.555 National School Lunch Program $425,237 - 1
84.010 Title I Grants to Local Educational Agencies $105,669 - 0
10.553 School Breakfast Program $76,416 - 0
84.027 Special Education_grants to States $37,370 - 0
84.367 Improving Teacher Quality State Grants $30,812 - 0
84.424 Student Support and Academic Enrichment Program $9,975 - 0
10.649 Pandemic Ebt Administrative Costs $614 - 0
84.365 English Language Acquisition State Grants $150 - 0

Contacts

Name Title Type
S25LF5LHVFV8 Jammie Sprank Auditee
6166421402 Andrew Seiler Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Findings--Financial Statement Audit Finding 2022-001 Considered a significant deficiency (repeat finding) Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Saranac Community Schools currently has more than the allowable fund balance in the nonprofit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund balance cannot be transferred to the general fund. Effect: At June 30, 2022 the District?s food service fund balance was greater than three months of expenditures. Cause: An increase in federal revenues from meal reimbursements caused a significant increase in fund balance. The District did not complete the planned equipment replacement and purchases. Recommendation: The District should monitor revenues more closely and adjust food service program to match revenues. Management should complete the planned expenditures needed to maintain acceptable fund balance. A spend-down plan should be developed and followed to reduce fund balance below acceptable levels. District?s response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Finding 2022-001
Findings--Financial Statement Audit Finding 2022-001 Considered a significant deficiency (repeat finding) Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Saranac Community Schools currently has more than the allowable fund balance in the nonprofit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund balance cannot be transferred to the general fund. Effect: At June 30, 2022 the District?s food service fund balance was greater than three months of expenditures. Cause: An increase in federal revenues from meal reimbursements caused a significant increase in fund balance. The District did not complete the planned equipment replacement and purchases. Recommendation: The District should monitor revenues more closely and adjust food service program to match revenues. Management should complete the planned expenditures needed to maintain acceptable fund balance. A spend-down plan should be developed and followed to reduce fund balance below acceptable levels. District?s response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.